France continues to remain an attractive country in Europe for expats, tourists and students alike. In 2022, more than 320,000 first residence permits were issued, a historic record and an increase of more than 17% compared to 2021.
In addition to its rich culture and history, France (also known as the country of human rights) boasts a wide variety of attractions, such as numerous cultural and sporting events, a variety of landscapes and possible activities, and gastronomy and wines that will delight gourmets. France is a habitable and relatively affordable place to live thanks to its low-cost public transport system, free education, and access to a low-cost health care system.
Whilst its culture, history, art, unique sites, and incredible cuisine may sound irresistible, it is worth noting that France has one of the most complex and expensive tax regimes in Europe. Taking personalised advice is vital, especially in the ever-changing environment we now live in.
What you will find in the guide
Our tax guide will help you get a better understanding of the French tax system and financial framework.
What it includes:
- Capital Gains Tax on investments: Details on how interest income, dividends, and capital gains are taxed in France.
- Capital Gains Tax on Land or Property Sale: Information on the taxation of capital gains when selling property, with exemptions available for primary residences.
- Wealth and Property Tax: An explanation of the changes to wealth tax, which now primarily target real estate assets. Learn more about what the thresholds are and what deductions can be applied.
- Succession and Inheritance Tax: An overview of succession tax rates in France and strategies to reduce the tax burden on your heirs and beneficiaries.
- Assurance Vie: Information about what an Assurance Vie is, why it is so commonly used in France, the different ways an Assurance Vie can be used, and the benefits and different ways that an Assurance Vie can mitigate taxes in France.
The guide also covers other tax-related topics, including:
- Income Tax on Salary and for Self-Employed Individuals
- Rental Income Tax for Furnished or Unfurnished Rentals
- Local Taxes
- Social Security Contributions
- Tax on Goods and Services
- Occupier’s Tax
- French Tax Deductions, Tax Reductions, and Tax Credits, including those related to childcare costs, school fees, energy transition work, rental investments, and retirement plan contributions.
What we do
At MWC Group, our team of regulated advisers can assist in providing you with personalised advice specific to your circumstances. Whether you are moving to France or settled, our advisers can assist you with restructuring your assets to meet your long-term objectives and financial goals.
We can help you with:
- Wealth Management – restructuring your wealth to ensure maximum tax efficiency in France.
- Financial Planning – creating a long-term plan designed to meet your financial goals and objectives.
- Retirement Planning – assisting you with optimising your wealth so that you can become financially independent by the time you retire.
- Investment Advice – identifying solutions and investment platforms that meet your requirements.
- Asset Management – ongoing management of the underlying investment assets in line with your risk profile, investment objectives and time horizon.
- Loans and Mortgage Brokers – identifying affordable mortgage solutions to assist with property purchase in France.
- Family Protection – whether you are thinking about education funding for your children or creating a bespoke succession plan, we have the knowledge and expertise to identify the right solutions for you.
Some of the reasons why you should have an Assurance Vie:
Tax efficiency: Deferral of Income tax, favourable tax treatment on withdrawals including tax allowances after 8 years, succession tax exemption and reduction in succession tax rates.
- Flexible investment vehicle: Freedom to top up, make withdrawals when required, and the ability to use the policy as collateral.
- Investment growth and diversification: Ability to use a wide range of investment assets, bespoke investment strategy.
- Inheritance and succession planning: The Policy allows you to choose who you nominate as beneficiaries.
Total assets in Assurance Vie as of August 2022
More than 45% of French people have subscribed to one or more Assurance Vie. France Population 67.5M
In the first half of 2022 contributions reached their highest level since 2010. 96BN€ Jan to Aug 2022
Mutual funds invested through Assurance Vie since the beginning of 2022
Of mutual funds in contributions.